Connected marketing that uses digital channels to engage with customers is more effective and cheaper than what came before, as Stan Rapp explains in this TV show. Connected Marketing is a fundamental change Technology has changed marketing, fundamentally. It is changed it in the best possible way. It has lowered the cost, and increased your opportunity [...]

Connected marketing that uses digital channels to engage with customers is more effective and cheaper than what came before, as Stan Rapp explains in this TV show. Connected Marketing is a fundamental change Technology has changed marketing, fundamentally. It is changed it in the best possible way. It has lowered the cost, and increased your opportunity [...]

The Triangle Matrix

The Triangle Matrix

John Halpin: "Most organisations will do a lot of DM, predominantly a letter to a customer, an offer to a customer or a prospect. And they will get potentially a good response rate for them, between one and two percent. That will wash its face and make money for the organisation. From a customer perspective looking at, that’s pretty poor. And so one out of 100 people respond, so 99 people throw that away, don’t respond, they don’t like that offer, but a one response, that’s relatively okay, which is the way the DM industry’s been working for many years. When you start to understand data you can move that triangle pyramid slightly up to get better response rates. The next sort of logical step on standard campaigns, there’ll be more sort of round about optimisation, a bit of modelling, a bit of behaviour analysis, create a model on the data, propensity to buy this product. So what you’re actually doing is lessening, you’re shortening the number of people you go and get, your 100,000 might be 70,000, but conversely your response rate might go from two percent to four percent. So response goes up, cost of the actual marketing goes down. Moving up again, you go into things round about trigger activity and events, events and triggers is what I call it.

That’s based on information you might have or may not have on the customer, for example you might not have their renewal date, therefore they’re only in that market for a specific time of the year. You only may have three days out of 365 to actually market to them. So use that, don’t waste your time on the other 362 in that instance, or it could be a trigger in terms of they’ve deposited a large sum of money in their current account, well they should be having a savings account then, this kind of thing. If you start to understand that, your volume goes down, because it’s very targeted, your response rate might go up to, up to eight percent/ten percent. And the top of the pyramid is what I call CVI – Customer Volunteered Information. So the customer is actually giving you information as opposed to you looking for it and finding it. And that could be the customer goes into a branch, it doesn’t have to be a bank, it could be anything, in my example, doing financial services, I could actually say to a rep, “I’m going to be in the market for a mortgage in three months time” because that’s when we’re looking to buy our first house. If that’s captured, so they’ve actually told you that, you know, what a great piece of information. So the spike of the pyramid goes up. And CVI, I’ve seen response rates of ten percent plus. Compared to the one or two percent at the bottom of the triangle, it’s 10 times better, very powerful."

Connected marketing that uses digital channels to engage with customers is more effective and cheaper than what came before, as Stan Rapp explains in this TV show. Connected Marketing is a fundamental change Technology has changed marketing, fundamentally. It is changed it in the best possible way. It has lowered the cost, and increased your opportunity

John Halpin: “Most organisations will do a lot of DM, predominantly a letter to a customer, an offer to a customer or a prospect. And they will get potentially a good response rate for them, between one and two percent. That will wash its face and make money for the organisation. From a customer perspective looking